Refer to the Figure Below to Answer the Following Questions

question 87

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 7.2.1
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In Figure 7.2.1, international trade ________ consumer surplus in Canada by ________.

• A)increases; $320 million
• B)decreases; $192 million
• C)increases; $192 million
• D)decreases; $320 million
• E)increases; $576 million

---

Definitions:

Direct Labor

The cost of wages for employees who are directly involved in producing goods or providing services.

Direct Materials Inventory

Raw materials that are directly traceable to the manufacturing of products and are considered part of the inventory assets on the balance sheet.

Direct Materials Budget

A financial plan that estimates the raw materials needed for production and their expected costs.

Cost per Pound

A measurement of the cost to produce, acquire, or create one pound of a product or material.